By Adriano Marchese
American Airlines Group now expects lower revenue and a wider adjusted loss in the first quarter on the back of weaker air travel demand and sentiment.
The airline on Tuesday cut its revenue growth expectation for the first three months of the year, now expecting revenue to be unchanged from the prior-year period. Previously, the company guided for growth of between 3% to 5%.
Analysts expect revenue to rise to $13.02 billion, up from $12.57 billion in the prior-year first quarter, according to FactSet.
The company said that the lower revenue forecast follows the recent mid-air collision between one of its planes and a U.S. Army helicopter over the Potomac River in late January which left no survivors.
American also said that it has seen weaker domestic leisure travel demand, primarily in March.
American now expects a wider first-quarter adjusted loss per share of 60 cents to 80 cents, compared with a previous view for a loss of 20 cents to 40 cents. Analysts expected a loss of 30 cents a share.
The airline maintained its capacity expectations, measured in available seat miles, of flat to a 2% decline.
Costs, measured in cost per available seat mile excluding fuel and special items, were also left unchanged, and are still expected to be up high single digits.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 11, 2025 08:12 ET (12:12 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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